World News
DNV GL's Future Fuel Market Puts LNG, Ammonia Ahead
Class society DNV GL's maritime outlook report on puts liquified natural gas (LNG) and ammonia at the front in the race to decarbonise shipping.
One of the report's key findings states that new fuels "will play a key role" in meeting International Maritime Organisation (IMO) greenhouse gas emission goals.
Within the portfolio of fuels competing for fuel oil's crown, LNG is in prime position.
"LNG is available globally and in large volumes, " the report said.
But bunkering infrastructure is limited. "[This] must expand before widespread uptake of LNG as ship fuel can take place."
Similarly, while the report noted that "the price of LNG fuel can be competitive... a global market similar to fuel oils and distillates is still not in place."
Nevertheless, the report's "modelled pathways" show "there is a prevalent use of liquefied methane (40%-80% of the 2050 fuel mix)".
Ammonia would come to the fore "as the most promising carbon-neutral fuel option for newbuildings". In addition, it is competitively priced compared to other fuel alternatives.
"The preference for ammonia is due to the lower cost of the converter, storage and the fuel itself compared with H20 and liquefied biogas synthetic methane," according to the report.
A full copy of the DNV GL report can be downloaded here.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 548.00 | 0.50 | 677.50 | 2.00 |
| Rotterdam | 513.00 | 0.50 | 649.00 | 3.00 |
| Houston | 544.50 | 2.50 | 675.00 | 4.00 |
| Fujairah | 541.50 | 2.50 | 744.00 | 3.50 |
| Global 20 Ports Average | 572.00 | 2.50 | 758.00 | 2.50 |
| Global 4 Ports Average | 536.50 | 1.50 | 686.50 | 3.00 |
| Global Average Bunker Price | 624.00 | 2.50 | 801.00 | 3.50 |
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